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New US Tariff Rates Take Effect from 7 August 2025 The United States has introduced new import tariffs impacting Australia and other trading nations. A 10% standard tariff has been applied to most imported goods since 9 April 2025, with many Australian-origin products falling under this measure. While this baseline applies broadly, some goods attract higher rates, and others are exempt. Further changes were confirmed on 31 July 2025, with adjusted tariff rates for selected countries coming into force from 7 August 2025. Additionally, from 29 August 2025, the US will eliminate the de minimis threshold for low-value imports. This means all shipments valued at US$800 or below will also be subject to applicable country-specific tariffs. Exporters are encouraged to remain informed of these developments and obtain professional advice to ensure compliance with the evolving US trade requirements.
Goods Subject to Higher Tariffs - A 50% tariff applies to Australian steel and aluminium imports into the US from 4 June 2025, up from 25% imposed on 12 March 2025.
- This also includes certain downstream products containing steel or aluminium.
- Tariffs are imposed under Section 232 of the US Trade Expansion Act of 1962, citing national security concerns.
- Automobiles, light trucks, and selected automotive parts are subject to a 25% tariff, also under Section 232 provisions.
- A 50% tariff on copper and copper-containing products came into effect on 1 August 2025, again under Section 232.
Implications for Australian Exporters to the US - New US tariff measures are expected to impact Australian exporters differently across sectors and businesses.
- Tariffs on other countries may also affect products made overseas but exported by Australian companies.
- Staying informed on US trade policy updates is important as the situation develops.
- Austrade's Go Global Toolkit provides resources such as tariff updates and webinars with expert guidance.
- Exporters are encouraged to seek independent advice, including:
- Consulting licensed customs brokers
- Contacting US Customs and Border Protection for specific questions
- Australia's economy remains resilient, supported by strong free trade agreements.
- The Australia-United States Free Trade Agreement (AUSFTA) offers preferential treatment for Australian exports to the US.
- US goods continue to enter Australia tariff-free under AUSFTA.
Goods Currently Exempt from Tariffs Some items remain excluded from the 10% baseline duty, including: - Specific energy products
- Coins and bullion
- Other goods granted exemptions as part of ongoing sector investigations
Ongoing US Trade Investigations Under the Trade Expansion Act 1962, the US has launched multiple investigations to assess whether certain imported goods pose risks to national security. These include: - Timber and lumber, and related products
- Semiconductors and related tech (e.g., smartphones, laptops)
- Pharmaceuticals and active ingredients
- Critical minerals and their derivatives
- Medium and heavy-duty trucks, aircraft and parts, and unmanned aerial systems (drones)
*Note that Australia is not listed as it was not changed, with a 10% reciprocal tariff remaining as per earlier executive order.
In separate announcements, the Administration increased the tariff rate for Canadian imports outside the scope of the US Mexico Canada Agreement (USMCS) to 35 per cent, and for Brazilian imports by an additional 40 percent (notwithstanding the entry in the above Annex). Rates for Mexico were paused for a further 90 days and negotiations with China continue.
PREVIOUS UPDATES US TARIFF UPDATE 8 - US Tariff update with Ambassador Rudd
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US TARIFF UPDATE 5 - U.S. Customs and Border Protection Daily Digest Bulletin
US TARIFF UPDATE 4 - FTA / APSA initial response to the US Tariffs
US TARIFF UPDATE 3 - Austrade resources
US TARIFF UPDATE 2 - CGT Law commentary / Exempt HS Codes / Country rates / White House announcements
US TARIFF UPDATE 1 - Federal Government Response
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